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Company Analysis

International Business Machines IBM

A comprehensive view of key metrics, scores, and financial health for International Business Machines

Overview of International Business Machines Corporation

IBM NYQ
Technology Information Technology Services Framework: Software & SaaS Mega Cap
International Business Machines Corporation (IBM), is a Mega Cap company, in the Information Technology Services industry, last closed at $232.09, about 34.0% undervalued vs fair value, -8.4% 1Y return, placing in the top 10% of its sector.
Metrics P/E 26.5× Rev Growth 7.6% ROE 35.3% Gross Margin 58.2% Div Yield 2.26%
USD 232.09
-1.19%
(Delayed)
• Vol 90d: 67.7%
52-Week Range
Market Cap
$277.55B
Enterprise Value
$335.65B
Overall Score
View breakdown
Overall
Growth
Good
Profitability
Good
Health
Fair
Efficiency
Good
Valuation
Good
Growth
Good
Profitability
Good
Health
Fair
Efficiency
Good
Valuation
Good
Completeness: 100%
Confidence: 62%
Updated: Sep 12
Top Beats

Quick Facts

Website https://www.ibm.com
HQ Armonk, NY
Employees 264,300
Fiscal year Dec 31

Next Events

Earnings Oct 21

Fair Value Snapshot

Bear Base Bull
$284
$311
$342
Current: $232.09 +34% vs base

Engine Room Money Flow™

Mega Cap

Software & SaaS - Where revenue goes and how value is created

Flow Steps
Total Revenue
$67.5B
7.6%%
Gross Profit
$39.3B
10.5%%
Operating Income (GAAP)
$12.5B
24%%
Operating Cash Flow
$13.2B
-1.9%%
Money Flow Bridge
Flow Direction: Money moves from left to right
Components: Breakdown shows composition of each stage
Industry-Specific: Software & SaaS

Quality & Reliability Indicators

Gross Margin
58.2%
Good

Gross Profit / Revenue — pricing power and product moat (SaaS benchmark: >70%)

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Owner's Pocket - Capital Allocation

Total Returned to Shareholders

Combined dividends, buybacks, and debt reduction

$7.3B
63.5% of FCF

Where It Leaks

Cash Flow Health some concerns
Moderate efficiency issues detected. Review active leaks below for improvement areas.
3
Active Leaks
0/3
Improving
0
High Impact
0
Critical
Locked Leak
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Locked Leak
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Moat Analysis Software & SaaS Specialized

Competitive Advantage Assessment

Evaluating International Business Machines's durable competitive advantages across 6 defense dimensions

Overall Moat Strength
69
/100
Moderate
Scores based on quantitative metrics and qualitative factors
Full moat analysis

Key strengths

  • Premium Software Margins Gross margin quality is strong versus peers (score 0.92), consistent with premium software economics.
  • Revenue Converts Cleanly to Cash Cash conversion is strong (score 0.89), showing scalable economics.

Key risks

  • Liquidity Cushion Looks Thin Liquidity position is weak (score 0.13), leaving less room for error.

The dashed ring is the peer median. Defense scores are percentile ranks against peers, so 50 is roughly the typical company in this group.

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Pricing Power

Strong
79
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Trade-Off Ledger™

Where management spends the performance budget - Growth, Profitability, or Safety

Software SaaS vs Industry Peers 94% Coverage
Trade-Off Triangle Visualization A ternary plot showing IBM's balance between Growth (32.3%), Profitability (39.5%), and Safety (28.2%). Growth 32% Safety 28% Profitability 40%

Click axes to expand details. Marker shows current allocation.

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Growth

53th percentile vs peers
54
Key Signals
Rev Growth YoY 7.6% 44p Def Rev Growth 16.2% 65p TSR 37.8% 77p Revenue CAGR 3Y 3.7% 36p EPS Growth YoY 73.7% 69p
Strengths
  • Cash Flow to Debt Ratio in top 20% of peers (2.99, 88th percentile)
  • Superior capital returns - 2 return metrics above peer median
  • Operating Margin in top 20% of peers (18.5%, 86th percentile)
  • Consistently strong margins across 3 metrics
Risks

No significant risks identified for this axis.

Profitability

66th percentile vs peers
66
Key Signals
Strengths
Risks
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Safety

47th percentile vs peers
47
Key Signals
Strengths
Safety drilldowns are available to premium members.

Two Futures

Scenario-based fair value ranges for International Business Machines.

Loading valuation model...
Unable to Compute Fair Value

This company cannot be valued using standard models.

What this means: The Scenario Theatre requires financial data (revenue, cash flow, shares outstanding) to calculate fair value estimates. This data may be unavailable for:

  • Recently listed companies (IPOs, SPACs)
  • Shell companies or holding companies
  • Companies that haven't filed recent financials
  • Foreign companies with limited data coverage
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Bear
-
- - -
- upside
-
Base
$310.91
- - -
+34.0% vs current
Snapshot base estimate
Bull
-
- - -
- upside
-
Fair Value Range Current: $-
$- $- $-
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